Lithuanian Film Tax Incentive Extended for Another Five Year Period2023-12-05
The Lithuanian Parliament has approved a proposal to extend the Film Tax Incentive for another five years until December 31, 2028.
The purpose of the Lithuanian Film Tax Incentive which came into force in 2014 is to create favourable conditions for filmmaking in Lithuania. It can be taken advantage of by a Lithuanian business, by providing financial aid for filmmaking and thus reducing their taxable income and income tax.
According to the data of the Lithuanian Film Centre, the usage of the Film Tax Incentive is increasing each year. Last year filmmakers received more than 17.8 mln Euro of gratuitous investments by taking advantage of the Incentive. Compared with the great results of 2021 the sum of financial aid has grown by 18%. That is the highest sum received through the whole period since the Incentive has been in place.
In just one year, the number of financed films has increased too. Last year, a total of 85 new films that benefited from the Incentive were financed: between those, there were 63 national, 13 foreign and 9 co-production film projects.
The updated provisions of the corporate income tax law regarding film incentives will take effect on January 1, 2024. They will be applicable when calculating and declaring corporate income tax for the tax periods of 2024 and subsequent years.
Find more information about the Film Tax Incentive.